Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 1769, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to prohibit a broadcast employer from including in any employment contract any provision that restricts access to prospective employment within the broadcast industry.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO, the Hawaii State Association of Electrical Workers, the Screen Actors Guild, Hawaii Branch, the International Alliance of Theatrical & Stage Employees, Mixed Local 665, the American Federation of Musicians, Hawaii Local 677, and two private citizens.

Testimony in opposition of this measure was submitted by Hearst-Argyle Television, Inc., Raycom Communications, Inc., Emmis Communications, Inc., Cox Radio, New West Broadcast Corporation, and Clear Channel Radio Hawaii.

Your Committee finds that unlike the large markets on the mainland, the broadcast industry in Hawaii is relatively small and offers few opportunities for employment, particularly for entry-level broadcast employees. As a result, your Committee further finds that many individuals entering into negotiations for employment contracts with broadcast employers lack sufficient bargaining power to exclude noncompete restriction provisions from their contracts.

Your Committee determines that these individuals warrant some form of protection which would allow them to market themselves freely and seek employment elsewhere without the burden of excessive restrictions. However, your Committee further determines that the interests of broadcast employers, who have invested time, money, and other resources on these same individuals, must also be protected from equally burdensome restrictions on their ability to vigorously negotiate terms and conditions of employment. Therefore, your Committee has amended this measure to reflect a balance of the interests of the affected parties, but also recognizes that the matter must be further examined so as to reach the most equitable solution.

Accordingly, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1769, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1769, H.D. 1, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.